QDROs

What is a QDRO?

A Qualified Domestic Relations Order (QDRO) is a legal order the supplements a couple’s divorce or legal separation agreement. A QDRO details the division of retirement benefits between the divorced spouses.

QDROs must comply with the specific rules of the plan and applicable law

QDROs can be part of the Divorce Decree or a separate document

QDROs need to be approved by plan administrators and the court

Things to Understand

It is crucial to identify all plans that qualify and understand what each plan allows. Each plan is unique and has its own nuances. QDROs need to be drafted in a way that is acceptable to each plan’s administrator.

Both parties should review and approve the QDRO. Doing so ensures that your questions are answered, costs are reduced, and benefits are accurately divided.

All QDROs should go through pre-approval, if possible, by the plan administrator before being entered by the court.

Some plans have sample QDRO forms for plan participants. These samples may not include all the plan’s benefits or options, and may not reflect the parties’ agreement. It is important to know what changes need to be made.